Aiming to fix past missteps, Intel may team up with TSMC in a US-backed chip venture to reboot its future in the AI era.
Intel and Taiwan Semiconductor Manufacturing Company (TSMC) are reportedly exploring the creation of a joint venture. According to a Reuters report, the partnership would see TSMC take a 20 per cent stake in a new entity managing Intel’s chip factories.
The proposed deal follows pressure from both the White House and the US Commerce Department. As per the report, officials are urging cooperation between the companies to address ongoing issues at Intel and help stabilise the country’s semiconductor industry.
However, neither company has commented publicly, and the White House has not responded to requests for clarification.
Reports from March revealed that TSMC had previously approached Nvidia, AMD, and Broadcom to invest in a similar joint venture. This move followed the US government’s reported request for TSMC’s support in helping Intel regain its standing in the chip market.
Intel has faced mounting difficulties in its efforts to become a major chip manufacturer for external clients. Sources claim that Intel struggled to match TSMC’s customer support and technical reliability, leading to delays and failed production tests.
The company’s financial performance has also declined sharply. Intel posted a net loss of $18.8 billion in 2024 — its first annual loss since 1986 — largely due to heavy impairments. During the same year, Intel shares plummeted by 60 per cent, even as the S&P 500 rose more than 23 per cent.
However, there have been signs of recovery in 2025, with Intel shares up by nearly 12 per cent.
Intel recently appointed industry veteran Lip-Bu Tan as CEO in a bid to restore momentum, following its missteps during the AI-driven semiconductor boom.
Meanwhile, TSMC has announced plans to invest $100 billion in the US, including the construction of five new chip facilities, signalling its commitment to expanding its American presence.
